Government OKs Romanian privatisation

20 June 2013

A government-approved strategy for the partial privatisation of Romanian state-owned nuclear power corporation Societatea Nationala Nuclearelectrica will see an initial public offering of 11.077% of the company's existing share capital.

Cernavoda (Image: Nuclearelectrica)

The government announced that a total of 28,100,395 newly issued shares are to be put up for sale. A different figure - 25,368,236 shares - was given by Romanian energy minister Constantin Nita at a press conference following the announcement. Nita said that 85% of the shares would be offered to institutional investors, and also said he estimated that the sale would raise a maximum of RON 300-350 million ($88-102 million).

Nuclearelectrica operates Romania's two Candu units at Cernavoda as well as a Candu fuel manufacturing plant at Pitesti. The company is currently 90.28%-state owned and reports directly to Romania's ministry of economy. The remaining 9.72% is owned by Fondul Proprietatea, a joint stock company established by the Romanian government in 2005 to recompense those who lost property under Romania's former communist governments. Eligible claimants were awarded shares in the company in lieu of compensation.

Nuclearelectrica currently holds an 84.65% share in EnergoNuclear SA, a company established in 2009 to oversee the construction, commissioning and operation of two further Candu units planned for the Cernavoda site.

Procedures including a general shareholders meeting and prospectus publication must now be completed before the Nuclearelectrica shares are offered for sale, a process that Nita said is expected to be completed by 10 July.